Incident: In the first three quarters of 2019, Chongda Technology achieved revenue of 2,777 billion yuan, a year-on-year increase of 0.17%, and achieved net profit of 390 million yuan, a year-on-year decrease of 9.83%. Among them, in the third quarter of 2019, revenue of 925 million yuan, a decrease of 2.22% month-on-month, and realized net profit of 126 million yuan. The third quarter results declined temporarily, and we continue to be optimistic about future 5G performance growth: due to factors such as the economic downturn and trade wars, the traditional PCB business experienced a temporary decline, but we believe that the short-term decline in performance will not affect future growth. With the construction of 5G base stations and the evolution of antenna technology, it will directly drive the increase in the number and performance of PCB boards. In the future, communication PCB boards will usher in a favorable situation where volume and price will rise rapidly. Stable R&D expenditure, driving steady iterative upgrading of core technology: In the third quarter of 2019, Zongda Technology's sales expenses were 37 million yuan, up 1.84% year on year. Expense control was good. Management expenses were 61 million yuan, up 7.56% year on year, and financial expenses were -08 billion yuan, down 155.31% year on year, mainly due to increased exchange earnings and reduced interest on convertible bonds. In the first three quarters of 2019, Zongda Technology's R&D expenditure was 163 million yuan, an increase of 36.68% over the previous year. The company's R&D investment continued to increase, driving steady iteration of key technology routes. Transforming the medium to high-volume market, opening up intelligent manufacturing, and promoting high-end board production: Chongda Technology previously started with small-batch PCBs. In recent years, the company has officially entered the medium to large batch market, and the industrial line has continued to enrich, opening up room for revenue growth. At the same time, the company cooperated with IBM and ORACLE to introduce flexible production lines, open up intelligent manufacturing, and comprehensively promote high-end board production. Profit forecast and investment rating: We expect Chunda Technology's revenue from 2019 to 2021 to be $3.70 billion, $4.377 billion, and $5.167 billion, respectively, and EPS of 0.62 yuan, 0.78 yuan and 1.01 yuan respectively. The corresponding PE valuation is 28.94/22.81/17.70X, respectively, maintaining a “buy” rating. Risk warning: The progress of the 5G industry falls short of expectations, causing operators' capital expenses to fall short of expectations, delays in 5G base station construction, and reduction in orders for communication PCB products.